WhyItDropped

Nikkei 225 · August 2, 2013

The summer earnings backed it up

+3.29%

single-day change vs previous close

Part of a longer stretch

Two years of more easing

early in it · 2013-06-13 → 2015-06-24, +67.68% over the whole period

What happened that day?

  • On 2 August 2013 the Nikkei 225 rose 3.29%
  • First-quarter results were arriving in bulk and were mostly much improved
  • The reason is simple: a cheaper yen makes overseas earnings larger when converted back
  • Much of it was translation rather than selling more. Reported profit is still profit, though
  • This is when a market that had risen on expectation acquired evidence
  • No single trigger can be pinned to this day
  • The crash before it had been 20.36% from the peak

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.